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Power Lunch

News/Business. Sue Herera, Tyler Mathisen. Today's news on the economy, markets, real estate, media and technology. New. (CC)

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01:00:00

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Us 16, China 16, U.s. 10, Europe 7, Picard 5, Barclays 5, Simon 5, Illinois 5, Kate Upton 4, America 4, Madoff 4, Bernie Madoff 4, Asia 4, Obama 3, United States 3, Apple 3, Aflac 3, Michelle 3, Las Vegas 2, Marco Rubio 2,
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  CNBC    Power Lunch    News/Business. Sue Herera, Tyler Mathisen. Today's news on  
   the economy, markets, real estate, media and technology....  

    February 12, 2013
    1:00 - 2:00pm EST  

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some of the world's cleanest gas turbines are now powering some of america's biggest cities. siemens. answers.
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it is time for final trade time. pete, kick us off. >> bank of america ready to break out and get towards 13. >> mtw, construction trade, i ththe going to continue to move. >> steve weiss. >> qualcomm, running a sale, time to get it if you don't own it. >> that does it for us live goldman tech conference in san francisco. "power lunch" starts now. >> hello. welcome to "power lunch." michelle caruso-cabrera.
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in for sue and tyler. apple ceo tim cook making big headlines. the fight with hedge fund manager david einhorn and cannibalization of the company's product. more on that fallout. >> also mead china factor, las vegas rolling out red carpet for chinese new year tourist, which casino stock stands to win big. >> "sports illustrated" swimsuit edition hits news stands today. i bet you already knew that. supermodel kate upton on the cover for the second year running. she's going to join us live here on "power lunch." we don't want to miss that. >> in the meantime, let's check the markets. we have dow 14,000 and climbing as things stand at the moment, apple is weighing on the tech sector. we'll come to that in a moment. kenny pick ari joins us as -- >> director of relations. >> cnbc contributor.
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maybe pushing it. what levels are we eyeing now. >> 1525 on the s&p is what they are looking at. you can feel they just want to take it there. >> five points away. >> five points away. actually four points away. not a lot of volume but feel the grind going in front of the state of the union address, tomorrow's retail sales number. they are going to spin it as best they can but it's interesting. >> is it possible tore president obama to derail this rally, now that we don't have to worry about the debt ceiling? >> not only debt ceiling but last tuesday he put up sequestration. we're not going to come to an agreement, a couple of solutions, kick that can down the road, time to think and talk about it. you saw it grind higher. not real volume. listen, you want them, pay up, we're happy to sell on the way up. >> we're going to talk about apple during the course of the session, course of the program. what is your takeaway from what tim cook said or didn't say today? >> listen, i think it's very
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interesting this whole conversation with what einhorn has now created with apple. this conversation ensuing. i like apple. i like apple where it is at the moment. >> did you like it all the way down. >> i said a long time ago when it started to crack at 700, you had to be careful. there's so many names we saw at the end of the year, get into it, push and push the way the market got ahead of itself. i fully expect the market will back off some. it needs to some. if you look it up, exactly what it did over couple of months. >> thank you. breaking news in the bond market, three-year note up for auction. rick santelli tracking action at cme. were they hungry for government debt? >> to put perspective, we're talking three-year, 35 basis points, 32 billion, the yield
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.411, which is actually a little bit less than the .415 on the bid side of the wi market, lower yield, higher price. the bid to cover, 3.5910 auction average. that's exactly what it was, 3.59, indirect very light. 18 less than 10 auction average of 30. once again directs really steal the show at 26.9. we're going to give this auction a b plus. tyler, back to you. >> i'll pick it up. apple the big stock story. ceo tim cook making headlines during his q&a session in san francisco. cook taking on a host of issues from apple's cash, acquisitions, battle with hedge fund manager david einhorn. investors reacting there. you can see no great boost. overall jon fortt live at the goldman sachs technology and internet conference where tim cook took the stage. you know, john, it's
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interesting. the man is a very clever man. he knows that his company has lost a quarter of its market cap. he knows today would be the day he could start to reverse that. yet he said nothing really that investors could grab hold of. what was the body language, because you were in there. what was the body language on returning cash to shareholders? >> simon, the overall message was stop freaking out. everything is fine. we're going to return cash. we're going to do it our way. we're not going to do it the way einhorn seems to want. other messages investors will find interesting, margins, emerging markets and innovation. number one on margins, he seemed to say, yes, i've had many, a little margin hit. through supply chain cost management, volume, halo effect, people who buy many, buy other devices, we expect margins to come back up as they have in the past. on emerging markets, never say never in a sense.
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the only thing we'll never do it put out a crappy product, talking to a cheaper iphone saying they will address those markets in his own way, actually mentioning ipad being a way they address the criticism, they didn't have a cheaper mac, maybe a phone, something different is what i took away from that. finally on innovation he said we're firing on all cylinders, still talked about the good people, executives, and still with apple. >> thank you. president obama takes center stage to deliver his state of the union, a lot on the table, immigration reform, economy, massive debt. the response will come from marco rubio of florida. joining us, peter roskam of illinois, chief deputy whip for the republican conference. sir, nice to have you here. >> thank you very much. >> you're from illinois, you know a lot about spending, not that you helped create it. tonight are we going to hear anything about that side of the ledger, the spending, you think?
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>> you get the joke on illinois spending and it's in a downward spiral. it's a type of world view from an economic point of view that is completely an mating the white house. take illinois spending patterns and extrapolate that onto the u.s. economy, that's where the president is proposing to lead us about $26 trillion in debt. i don't think we're going to hear a lot about how the president can grow the economy through the private sector and why unemployment is still at a nagging 7.9%. i think that's where the action is and what he should be talking about but i don't think that's what we'll be hearing. >> when i was on "squawk box" this morning we entered a lot of democrats. they seem to think his last speech and the speech he's going to make tonight are going to be completely embracing both sides of the aisle. do you agree with that assessment? >> i'd be surprised. if you listen to the inaugural speech, this is going to be inauguration 2.0. i'm delighted to be surprised to hear a sincere bipartisan effort
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on the part of the president. what i've noticed over the past few years, the president's definition of bipartisanship is you vote for my stuff. i don't think that's a way to get to a remedy on a lot of these problems. already they are going back bought old democrat muscle memory and that is let's go to the taxpayers yet again, even though right at the end of des a huge boost in terms of new tax revenues coming in with the tax hike. >> what should marco rubio say tonight? can you give us any insight into what he might say to counter that thinking and persuade american people that's not the path. >> i don't ever any specific insight into what the senator is going to be talking about. my hunch is to cast a vision, an inclusive vision that describes what the economy is like, if it's growing and robust and dynamic yet again. not just struggling along at anemic growth rates where gdp continues to be downgraded. instead saying, look, tax rates that are reasonable, spending priorities that are reasonable, can create a foundation on which
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the economy can grow and flourish. that's been a hall mark for senator rubio and my expectations that is what he's talking about tonight. >> congressman, thank you for joining us. >> thanks. >> republican from illinois. >> don't miss coverage on president obama's state of the union address, 9:00 p.m. eastern time. we will carry the republican response as well. and christina's twicker, tweets and wicker. #sotu for a chance to see it. >> fashion company reporting a higher company profit boosted by a 70% gain in revenue. the stock is up, as you can see, 25% in three mondays. that is a retail team that knows what it's doing. >> absolutely. they are very hot right now. okay. coming up -- >> speaking of hot.
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>> supermodel kate upton is going to be here live to talk about being on the cover of "sports illustrated" swimsuit issue for the second year in a row. hasn't happened in 15 years. then from kate upton to jane wells. i love this two-shot. she's in las vegas with another tough assignment. >> you look very similar, jane. >> what does she have that i don't. all right. don't answer that. but as las vegas recovers a lot of that is due to chinese gamblers. a slowdown in china felt here. when "power lunch" returns.
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the chinese new year is upon us, the year of the snake. las vegas is rolling out red carpet for people from china. snakes decorate casinos. why? overall revenue growth in vegas, slow, baccarat revenue, a type of game, seen as a prospect for ne with a lot more.ly chinese. jane. >> i'm at the mgm grand. las vegas is putting it on. red. red for chinese new year. after surviving the collapse of the american consumer, "sin city" sure hopes it doesn't see a pullback in gamblers from across the pacific. las vegas has had a run of bad
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luck but don't tell the chinese. >> why did you come to las vegas for the chinese new year. >> for good luck. >> more than 4,000 mainland chinese nationals hitting "sin city" to celebrate the year of the snake. rgc economics says the typical budget could reach $100 grand including $500 a plate dinners. >> nothing better than caviar. >> competing for business every major gaming company, las vegas grand, ses arrest, mgm, calls it an arm's race to land the big whales. >> why here? >> vfter volume should be up 20% this year. some will spend hundreds of thousands of dollars per hand for baccarabaccarat. >> high-end gaming business, a third or more of our entire profitability. >> relatively new to this is
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cosmopolitan owned by deutsche bank, a high-end salon aimed at asian gamblers a little over a year ago. >> our revenues have been 25% over what our projections were when we went to build it. the international visitors spend about 25% more than a domestic visitor. >> the funny things, earnings there hit a rough pack, it's seting a record. >> spend a lot in retail, foods and hopefully a lot of money at the table. >> jim says there may be slowdown in growth from chinese gamblers but we've never had a down year. they have been joined by thousands more asians from canada. more from cosmopolitan ceo, including my he thinks vegas is a leverage play on the housing recovery. michelle. >> that sounds super interesting. tell me, jane, not just gambling revenues. don't they spend a ton of money on fancy dinners for the chinese
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new year. >> they are going to louis vuitton. we're at one place bellagio, $500 a plate dinner. table is set. flew in china from china. eight to a place, important, dom perignon, whole thing. >> here to discuss the chinese impact on the economy but first breaking news. julia borsten with breaking news. >> that's right, michelle. intel is announcing its new vision called intel media and a new tv service. that's right. intel will be delivering over the top tv. that means they will be offering live television, tv without going through a cable provider. intel isn't disclosingets partners. looks like it won't be introduced until the send half of the year. intel is confirming basically reports over the last number of months that intel is investing
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in this future of tv, this cableless over the top tv business. one thing i want to opponent out here that's particularly interesting, intel media is stressing what they are calling a true catch up service. you don't have to record it. if you miss anything, everything is going to be there and available to watch within seven days over 650 devices. intel says you'll be able to watch everything on radio and tv networks. sounds like interesting technology of there's certainly a number of partners involved but we will have to wait for more detail both on the launch date, what the actual device is they are selling and who this partners are. michelle, back to you. >> terrific, julia. we'll watch to see if the stock reacts. chinese tourism, jane just laid it out, they spent $8 billion according to department of commerce. obvious economic benefit but is there more? an economist with a deep knowledge of china in particular, investing in china for the u.s. good to have you here. >> investors in casinos, they
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should care about tourism. should other investors care? >> bigger than casino, this is china's globalization 2.0. the china we knew today absorbed huge amount of fdi around the world, turned it around. a lot of their jobs went along with that fdi into china. the next phase of chinese activity with the world means chinese consumers coming out into the world. chinese tourism dollars coming out an investment coming out as well. that's not a mixed blessing but all around good for u.s. >> you sent usa great chart that charts rise in chinese tourism in the united states as long as rise with chinese foreign investment into the u.s. they map each other almost perfectly. coincidence? >> absolutely not. it's the same phenomenon. china of 10 years ago didn't know how to do things abroad. same thing that's causing chinese tourists to come to the u.s. and spend hard earned dollars here are driving
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companies over. chinese tour is built business in china, run businesses in china and are thinking about what their global footprint might look like. there's no better marketing for america, inc. than spend vacation time with your family. >> when they vacation here, that could lead to more than foreign investments. >> absolutely. they never stop doing business. sitting at the casino tables, on the beach, in nashville, they are taking meetings. every local business wants to get together. >> chinese investment in the united states is extremely controversial. we've seen deals stopped. is it justified to be critical as some are. >> u.s. screens investment from all over the world. china is the new kid on our block so it's going to get the most immediate scrutiny. we hear a lot about deals knocked down. next um, u.s. portion of that going through. vast majority are going to succeed and go through without any problems. >> dan, thank you for joining
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us. >> thank you. >> chinese new year. the year of the snake. thank you so much. ahead on the show, mcgraw hill reports earnings and big hince to its department of justice lawsuit. the big one against standard & poor's. >> lehmans in the united states, barclays. >> the investment bank will stay. the company as a whole will be 3700 people fewer. we'll tell you what businesses the bank is exiting and what that means for u.s. banks as well. but we can still help you see your big picture. with the fidelity guided portfolio summary, you choose which accounts to track and use fidelity's analytics to spot trends,
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make your mark with ink from chas great, everybody made it. we all work remotely so this is a big deal, our first full team gathering! i wanted to call on a few people. ashley, ashley marshall... here. since we're often all on the move, ashley suggested we use fedex office to hold packages for us. great job. [ applause ] thank you. and on a protocol note, i'd like to talk to tim hill about his tendency to use all caps in emails. [ shouting ] oh i'm sorry guys. ah sometimes the caps lock gets stuck on my keyboard. hey do you wanna get a drink later? [ male announcer ] hold packages at any fedex office location. a hairline fracture to the mandible and contusions to the metacarpus. what do you see? um, i see a duck. be more specific. i see the aflac duck. i see the aflac duck out of work and not making any money. i see him moving in with his parents
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and selling bootleg dvds out of the back of a van. dude, that's your life. remember, aflac will give him cash to help cover his rent, car payments and keep everything as normal as possible. i see lunch. [ monitor beeping ] let's move on. [ male announcer ] find out what a hospital stay could really cost you at aflac.com. welcome back to "power lunch." i'm josh lipton. we are at session highs right now. here is another name that's moving higher, dell. the news, another dell shareholder unhappy with this planned buyout, t. rowe price now saying it plans to vote against the buyout. t. rowe's chief investment officer brian rogers saying the proposed buyout does not reflect the value of dell. the stock today, as i mentioned, in the green above that 13.65 level. the board agreed to last week. investors thinking there might be a chance the deal ultimately
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requires a higher price. michelle, back to you. >> thank you so much, josh. mcgraw hill reporting better than expected quarterly earnings from continuing operation. the revenue rose 22% to $1.23 billion. the company being sued by the federal government for bond rating issues by its standard & poor's. take a look at shares of mcgraw hill. >> meanwhile details on that major restructuring at barclays as it attempts to rebuild its reputation after a string of scandals. the british bank laying off at least 3700 workers. half of that will likely come from investment banking. investors inevitably, you know how this works, reacting to the news very favorably. 9%, barclays, kayla, has been gaining throughout the session. >> that's right. barclays spent much of 2012
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mired in problems. ceo will right the ship for shareholders. set deadlines for cutting compensation, also set strict targets for return on equity. the board and top 125 executives at barclays will be held accountable for. on those 3700 jobs that will go, more than half in the investment bank, the bulk of those from asia. former ceo bob diamond, the bank moved aggressively to establish a heavy footprint there. underwriting down most in asia overall. that strategy proved to be a loser. downgrade global equities and stop trading certain commodities. the task facing them is straightforward, striking out against wild wes culture from which all banks have come under fire for regulators. >> i think this is true of the industry, also true of us. i think banks became too short sighted, too aggressive and too self-serving. >> when asked today, jenkins said managing ethically is the best defense against regulators
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trying to break up investment banks from retail banks, especially now thatclays investment bank makes up 60% of its profits. ironically or not, biggest contributor, acquisition of lehman brothers, not existing european. >> that isn't the end of the story, is it? a move in the uk to break investment banks away from their retail operations. clearly he hopes he can do enough to prevent that from happening further down the line. >> that's exactly right, simon. he got a question whether in five year's time there would be a move for the investment banks, even if you don't set up a separate shareholdering structure, you have separate boards, all intents and purposes separate companies that operate within the same structure. he thinks for the near term, that's not an option they will have to be embarking on. >> kayla, thank you very much. when we come back, "sports illustrated" swimsuit model will
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welcome back to "power
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lunch." i'm sharon epperson, the final trades are coming in now in the gold market. gold finishes flat right around 1650 an ounce. decline in a dollar enough to get positive momentum to gold to help it finish in the green for the day. we are also watching, though, the big story today, which seems to be what's happening in the palladium mark. we have palladium leading the games in the metals complex. once again in the session. it is the best performing for the week, month, year. a lot has to do with strong car sales, production declines in south africa and concerns about russian exports, what that means for supplies. also open interest. open interest rising for palladium and other meltals as well. appears the global economy getting better. continue to watch that. what happens to margins, coming down for metals as of the close of business today. back to you, simon. >> thank you, sharon.
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that said, tough quota for coca-cola, largest soft drinks with revenue coming in less than expecting, pressured by a weaker than expected performance in europe and china. that was acknowledged by ceo on cnbc's "squawk box" this morning. >> i think there's still apprehension out there, certainly in europe. there's a transition going on in china where i think what we see is the gdp, actually disposable incomes have shown a divergence. >> let's look at the way coke is trading in a market rising, it is down 2.6%. down 66 points, mary watching. >> looks like the turnaround in tech has helped to push the markets to the best levels of the day. dow up 65 points. s&p 500 is actually trading at a five-year high.
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we have record levels for the russell 2000 as well as s&p midcap index. once again this rally, i guess you could say reconnecting or restarting after a pause in yesterday's session. part of that can beafter tributed to decent earnings news we received today. leading the charge, the gains we are seeing in financials, xlf, which is financial etf basically trading at a five-year high. take a look at bank stocks, goldman sachs, jpmorgan, citi trading at 52-week highs in the session. a home supply company stronger than expected, masco. that's bleeding into the houm home builders looking strong. >> thank you, mary. let's head to the nasdaq and check in on what seema mody has there. >> a lot of news in tech. interestingly enough it's
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retail, fossil, the watchmaker, strong earnings, revenue growth here in the u.s. as well as in asia. fossil also announcing a global licensing agreement with tory birch. apple, stock lower after the presentation, pipeline, emerging growth and to some extent allocation strategy, up 1.4%. facebook lower asll, street seems to be losing confidence in the stock. yesterday bernstein downgraded the stock, today btig cut to sell saying mobile growth is not enough. back to you, simon and michelle. >> thank you very much, seema. >> stocks hedge higher on the state of union, uncertainty starts to peel away. let's bring in joe, global market strategist with jpmorgan funds. welcome back to "power lunch." you like the market. >> you need it temper expect as,
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up 6.5%, a rally since january. >> some years that's all you're going to get. to get it in january is good. >> just in january is good. markets directionally head higher from here. of course any time you see this quick of a move up, you have to temper expect as. i would expect mild pullbacks in the market. we view this as buying and our fundamentals remain in place. >> everything happy, la la good, no problems in the world. >> i wouldn't go that far. >> nobody is worried about washington anymore. nobody worried about europe anymore. even though when you saw coke's numbers, the only area of the world where they were down was europe. it was down 5%, way below expectatio expectations. >> let's be clear. the world is not a perfect place. we've avoided pretty big catastrophes, reduced extreme risk, europe still there clearly, ecbs program was a game changer, calming the markets and buying sovereign more time. here in the u.s., again, look at earnings, corporate
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profitability, doing quite well. asia, global growth picking up. i think there are reasons to be concerned. still a lot of head winds. however, i think as you continue to see this diminished tail risk from macrouncertainty, markets will move higher. >> let's scoot over that, elections in spain. could this be a start of a great long-term bull market. "wall street journal" raises on monday. could we get years now, years of 15, 18% returns on stocks. is that possible, or would you just be talking to say yes. >> i'd hike to believe that's possible. i'm certainly crossing my fingers we see those types of returns. >> why could it not happen? what would prevent it from happening? >> certainly possible flairup, europe two steps forward, one step back. look at the middle east. still that ongoing tension in iran between the west. >> but you say, that you see, neither south korea nor iranians
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has affected this market? >> it has not. you are absolutely right. it has not. i think directionally markets move fine. if you're asking, is it likely 15, double digit markets moving forward, i want to temper expectations. >> how are you allocating results, originally sector wise you like the u.s. better or worse or what? >> if we look around the world, risk equities on track with -- >> risk assets means stocks, high yields. got it. >> looking at stocks, i think there's a better opportunity in the emerging markets. you look at the price to book ratios, still trading 1.6, 1.7 times. in our view, an attractive time to get into emerging equity. >> brics or emerging markets emerged. >> heavyweighted to brics but clearly more countries there. i think broadly if you look at asia, asian equities deeply out of favor. there's opportunity there as
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well. >> you can actually pick up -- head of research was telling me you could pick up in greece and portugal businesses at a fraction. >> joe, point out as you're talking, dow touching multi-year highs. >> awesome. i'll take it. i think to your point, simon, take a look at europe. obviously the issues there are not resolved. how did marks perform last year, germany, greece do last year? this year you may see european outperform again. things are getting a little less bad. the lesson we learned, markets don't need -- >> i think it's funny that a little less bad is equal to the dow multi-year highs. that's the new normal we've grown accustomed to. >> it's just retraced where it was five years ago, not a jamboree. >> evaluations are significantly better, corporate profits doing well. thank you guys for having me always. >> let's recap some of the --
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there you are. let's recap some of the other big headlines driving today's session. avon rose the most in 10 months after fourth quarter adjusted profit top street forecast. it also said it would consider selling it's jewelry unit. rubber fell after cutting its forecast due to witness in the european auto market, the point we were making. american express after a partnership with twitter which allows them to buy by simply typing in a hashtag. media moguls facing off over the battle for your living room. an exclusive on what netflix is planning now. intel's new foray into the tv business. that just announced in a few minutes. plus the moment most have been waiting for. >> speaking of tail risk. >> "sports illustrated" cover model kate upton live on "power
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lunch." >> tail risk? >> enough said. [ indistinct shouting ] ♪ [ indistinct shouting ] [ male announcer ] time and sales data. split-second stats. [ indistinct shouting ] ♪ it's so close to the options floor... [ indistinct shouting, bell dinging ] ...you'll bust your brain box. ♪ all on thinkorswim from td ameritrade. ♪
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i hope oxygen paid for that. don't look now. we are one strong rally away from new all-time highs for the dow jones industrial, 14,164 is the all-time high, closing high. we're at 14,038. if you smile just enough, simon, maybe it can happen today. >> they don't have to pay for it. it's called symphony, have you heard? one group that will be watching president obama's state of the union speech carefully are retirees. eamon is here with a few numbers
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to expect and some encouraging signs. >> hi, simon, it's bound to be one of the most scrutinized aspects of the speech, entitlements, social security, medicare, medicate weighed against the backdrop of what he said against his second inaugural address here in washington just a couple weeks ago. take a listen. >> the commitments we make to each other, through medicare and medicare and social security, these things do not sap our initiative, they strengthen us. they do not make us a nation of takers, they free us to take the risks that make this country great. >> and some context for the president tonight, a little bit of encouraging news coming out of the cbo. this was highlighted by "new york times" today. take a look at some of these new numbers coming from the cbo detailing cost curve bending here now on the part of medicare and medicaid. cbo saying in 2020 medicare and
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medicaid spending is expected to be $200 billion or 15% less than projected. that means the rate of growth is coming down. health care experts don't understand what's driving those costs lower, although part of the pespeculation here is the recession, coin and wealth, people for going medical treatment. any slowdown in medical costs might make the president's job tonight easier. back to you. >> thank you very much. when we come back, brian shactman with a very tough assignment. he'll be interview "sports illustrated" swimsuit model kate upton, the first to appear on consecutive issues since tyra banks in 1996, '97. the teleprompter says i'm supposed to say, and i guess you can see why. >> she's a good looking girl. >> yes, she's beautiful.
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welcome back to "power lunch." i'm josh lipton, shares of 3m trading historic high. dow component up 20% in the past year. today the company announcing it has received certification for its first compressed natural gas tank, shares at the highs of the session trading up about 1%. guys, back to you. >> thank you very much. in today's yahoo! finance question of the day, we ask you what issue do you most want president obama to address in
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tonight's state of the union address. 5% said health care, 3% say immigration reform, 35% say deficit reduction. but the majority, 51%, economy and jobs. >> think he will. about 60 million people will read -- read -- the "sports illustrated" swimsuit issue. same way they really like the interviews in "playboy." jokes, drools aside, 60 million people will flip through the magazine. yet again, it has made a superstar out of a cover model. brian shactman back at headquarters with that model. brian. brian. >> hi, guys, ready for the interview right now? >> if you like. >> here we go. >> he's distracted. >> we're having a conversation here. i'm here with kate upton, the cover of the si swimsuit edition. that was a bit of a surprise.
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obviously welcome to cnbc. >> thank you. >> the second year in a row, tyra banks, el mcpherson, legends in the business, what does that mean for you? >> it means so much. i was so excited to go to antartica because no other fashion magazine has ever been there. so i was making history. but now i'm a part of history by being with people like that in double covers. >> it looks like a pretty picture. but the truth is it wasn't the greatest experience for you. tell us a little about what it's like to be in a bathing suit in antartica? >> it was an adventure for sure. it's freezing there, obviously. there's -- no one knew what to expect. you had to go to the land, in these zodiak boats, kicking eyes just to get the rafts enthusiastic. >> you got sick? >> yes. i mean, if i didn't get sick standing in antartica in a
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bikini, something would be wrong with me, something like wonder woman or something. >> you are. >> just quickly in terms, mark, of the business you exploded swim daily, daily website, relationship with target cortney reagan has been talking about. how big a business is this for "sports illustrated"? >> well, it's 10% of our overall business on a yearly basis. since '64, it's generated a billion dollars in revenue for us. >> kate, for you now, you were here last year, a year later your second cover. can you give us a sense of a brand and business, what's changed for you in the last year. >> i mean, everything has changed. i have so many opportunities now with different clients. i think for me what's really exciting, now i get to choose which clients i work with so i can do products or shoots that i really love and really believe in. >> you had 20,000 twitter followers two years ago and did the dougie. i'm not sure what that dance is.
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last year 100,000. now close to 800,000. in terms of your expectations and what's happened with your life, how have they matched up? >> i don't think i ever saw this happening. i'm so excited about it. but my life is a big surprise. i feel like tomorrow is going to surprise. i went to antartica, i was on the cover two years. >> do you look at yourself as a brand now? do you strategize with your business people and say, i might not want to do this because in 10 years i might not want to be associated with them. how do you strategize what to take on in terms of what you want to be a part of? >> you know, it's like i said. i want to be a part of products and companies that i actually like and believe in, because i think the shoots turn out better that way, if i'm enjoying it and i want to be there. and so it's not about money or how far this will get me, it's if i actually like it. >> kate upton, on the cover of
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this year's si swimsuit. that is not a green screen, guys. that is the real deal and she has the raspy voice to prove it. >> deftly handled, brian. deftly handled. >> isn't he lucky? >> always lucky. >> bernie madoff, does he still have money anywhere? >> i'm lucky because i have to follow that. we will talk to the man who was responsible for finding madoff's money irvin picard, our exclusive interview with the trustee of the madoff bankruptcy coming up, including a look at the time when the hunt got very aggressive and picard went face-to-face with the human aspect. [ male announcer ] any technology not moving forward
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more than four years after bernie madoff's epic fraud came to light, a team of lawyers still rounding up the money. it's difficult, tedious work and there are times when they come face-to-face with the human toll. scott cohn here with part two of cnbc exclusive. >> bankruptcy expert picard and the team are having success of as we first reported on swaukz, picard is preparing to return another half million dollars for a total of $5 billion returned, money held in reserve, tied up in litigation, a little more than half the $17 billion in principle has been recovered. but there was one day about two years ago when for a moment all the work ground to a halt. >> another stunning and dark chapter to the bernie madoff saga was written today. >> bernie madoff's oldest son mark killed himself on the
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two-year anniversary of his father's arrest. not far away at the new york law offices of baker hoffsteadler, their work recovering the millions took on a different dimension. >> i think i heard about it on a news report. >> what was your reaction? >> i was sad. that was just a very sad happening. it's unfortunate. it's certainly not something we wished for him or anybody for that matter. >> days early picard, who already sued mark and his brother andrew for millions had filed a new suit naming mark's wife, ex-wife mark and their children. >> by all accounts he was upset by that and decided he was ne going to escape this. do you feel any responsibility in a weird way for what happened? >> no. as i said earlier, it's unfortunate. there were many opportunities when we could have sat down, for
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example, and tried to settle, negotiate a settlement. he could have, if you will, be out from under. but he didn't choose to do that. >> no one knew the state of mind. certainly none of us did, of mark madoff. not that that would have necessarily guided us. we had no insight into that. >> suing the children, what up a necessary step, do you feel? >> we always think twice when we bring a lawsuit. we don't bring them willy-nilly. >> irving uses this phrase, other people's money, that's the crux of the entire case. this is more than the children of the madoffs. >> they have built $600 million in fees. that's paid not by the victim but by wall street. we should point out, as has been pointed out to us, not all madoff victims are equal. a big chunk of that $9 billion plus recovered has been claude back from investors who relied on their madoff statements and took out more money than they
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put in. they are big losers under a formula upheld by the supreme court last year. also a big dispute whether victims would be paid interest on their money. all they are getting paid is principle. put more of the interview on cnbc. do picard and sheehan think there's another madoff out there? they certainly have perspective on regulatory environment and improvements made or not made since then. >> how much cost? >> roughly $600 million, if you add administrative cost close to $700 million in fees. that's paid by wall street, by you and me if we invest. >> $700 million to reclaim $9 billion. >> which they say is a decent investment. >> thank you very much. ahead on the program, intel and netflix both unveiling big plans to be front and center on your tv set. julia borsten at a media conference in laguna niguel, california.
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>> that's right, simon, digital and tech giants here and making big moves to own a piece of the future of television. i'll tell you about intel and netflix announcements coming up after the break. look, if you have copd like me, you know it can be hard to breathe, and how that feels. copd includes chronic bronchitis and emphysema. spiriva helps control my copd symptoms by keeping my airways open for 24 hours. plus, it reduces copd flare-ups. spiriva is the only once-daily
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